MarkWest launches $615 million credit facility

By Sara Rosenberg

New York, Dec. 7 - MarkWest Energy Partners LP held a conference call on Wednesday to launch its proposed $615 million credit facility (B1), according to a market source.

RBC Capital Markets and JPMorgan are the lead banks on the deal, with RBC the left lead.

The facility consists of a $250 million five-year revolver talked at Libor plus 250 basis points and a $365 million five-year term loan B talked at Libor plus 225 to 250 bps, the source said.

The facility is hoped to close by year-end.

Proceeds from the new deal will be used to refinance the company's $500 million bridge loan that closed not too long ago, consisting of a $100 million revolver and a $400 million term loan, both priced at Libor plus 275 bps.

The bridge loan was used to help fund the acquisition of the Javelina Gas Processing and Fractionization facility in south Texas.

By and large, people who invested in the bridge loan will be approached for the new credit facility, but some new lenders will be approached as well, the source explained.

Originally, it was anticipated that the long-term credit facility would start being marketed in 2006, but the company decided to get a jump on things and try to get it done this year.

Plans to issue equity and bonds in the first half of 2006 to refinance some debt are still being considered by the company, depending on market conditions, the source added.

MarkWest is a Denver-based publicly traded master limited partnership focused on processing natural gas in the Northeast, from the Appalachian basin and Michigan.

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